I'm actually taking an Intro Financial Accounting course this semester. I'd considered going into a program to become a C.A., but I don't think I will. On the other hand, I'm finding it very useful to know how to really read the financial statements, what ratios to look for, and how it all gets put together.
One of the things I've realized, though, is that it makes no sense to look at a single financial statement in a vacuum. You've got to also know the numbers (or at least the ratios) for other companies and for the industry, as well as previous years of the company you're studying. Otherwise, you've got nothing to compare the numbers *to*. And numbers without a context aren't really helpful at all.
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I'm actually taking an Intro
Submitted by Julie on March 21, 2008 - 19:29.
I'm actually taking an Intro Financial Accounting course this semester. I'd considered going into a program to become a C.A., but I don't think I will. On the other hand, I'm finding it very useful to know how to really read the financial statements, what ratios to look for, and how it all gets put together.
One of the things I've realized, though, is that it makes no sense to look at a single financial statement in a vacuum. You've got to also know the numbers (or at least the ratios) for other companies and for the industry, as well as previous years of the company you're studying. Otherwise, you've got nothing to compare the numbers *to*. And numbers without a context aren't really helpful at all.